TMHC Sector Rotation Swing Trading: 13.04% Profit, 78% Uptrend Odds
A Swing Trading Sector Rotation Strategy Demonstrates Strong Potential: Generating 13.04% for TMHC
In recent times, the Swing Trader: Sector Rotation Strategy (TA&FA) has proven its mettle by generating a promising 13.04% return for Taylor Morrison Home Corporation (TMHC). This gain showcases the potential of using a combined technical and fundamental analysis strategy in navigating the financial market landscape.
The strategy, which incorporates elements of swing trading and sector rotation, focuses on capturing gains from short-term trends within specific sectors. By leveraging both Technical Analysis (TA) and Fundamental Analysis (FA), this strategy provides the trader with a holistic view of the market, thereby offering a higher degree of accuracy in predicting price movements.
In a recent scenario, TMHC stock demonstrated a positive 3-day advance of +1.35%. The historical analysis reveals an intriguing insight: when TMHC advanced for three consecutive days, it experienced further growth in the subsequent month in 239 out of 305 observed cases. This outcome implies that the probability of TMHC continuing its upward trajectory is approximately 78%.
This statistical data, while offering a positive indication, is primarily based on past trends and behavior. As a swing trader, one needs to utilize this information with a strategy that offers flexibility and quick response to market changes.
The essence of the Swing Trader: Sector Rotation Strategy lies in the capacity to shift focus swiftly between sectors, depending on their performance. This strategy aligns with the philosophy of 'buy low and sell high', but over a relatively shorter timeframe than traditional long-term investment strategies.
In the case of TMHC, the combined approach of TA&FA facilitates a comprehensive assessment of the company's potential, allowing for calculated decisions regarding entry and exit points. This strategy assists in identifying promising opportunities based on short-term price fluctuations, market trends, and overall economic indicators.
The recent gain of 13.04% for TMHC as facilitated by the Swing Trader: Sector Rotation Strategy (TA&FA) underlines the strategy's potential in capitalizing on market trends. Through the careful balancing of technical and fundamental analysis, swing traders have the tools they need to capture significant gains over short-term market fluctuations. This approach is becoming an increasingly relevant strategy for modern-day traders seeking to optimize their trading performance in a dynamically evolving market.
TMHC's RSI Oscillator climbs out of oversold territory
The RSI Oscillator for TMHC moved out of oversold territory on September 27, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 21 similar instances when the indicator left oversold territory. In of the 21 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TMHC advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
TMHC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on TMHC as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TMHC turned negative on September 15, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at .
TMHC moved below its 50-day moving average on September 05, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TMHC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TMHC entered a downward trend on September 06, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TMHC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.915) is normal, around the industry mean (5.742). P/E Ratio (4.697) is within average values for comparable stocks, (82.984). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.524). TMHC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (0.572) is also within normal values, averaging (71.793).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of entry-level and luxury homes
Industry Homebuilding
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TMHC and
Correlation & Price change
A.I.dvisor indicates that over the last year, TMHC has been closely correlated with TPH. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if TMHC jumps, then TPH could also see price increases.
| Ticker / NAME | Correlation To TMHC | 1D Price Change % | ||
|---|---|---|---|---|
| TMHC | 100% | +1.79% | ||
| TPH - TMHC | 88% Closely correlated | +1.90% | ||
| TOL - TMHC | 88% Closely correlated | +1.51% | ||
| KBH - TMHC | 86% Closely correlated | +2.14% | ||
| DHI - TMHC | 86% Closely correlated | +1.78% | ||
| MHO - TMHC | 86% Closely correlated | +0.71% | ||
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